Kiwibank six-month financial announcement

23/02/2012

Kiwibank has declared a profit of $37.9 million after tax for the six months ended December 31, 2011. This compares with a profit after tax of $13.9 million for the same period in 2010, and $23.5 million in 2009.

Kiwibank Chief Executive Paul Brock said the bank was clearly continuing a very positive growth path after its results for the previous reporting period were severely undermined by the global financial crisis and the Christchurch earthquakes.

“Our underlying performance has always been strong with consistent growth in lending and deposits and improving margins. We have largely worked through the set backs associated with the global economy and with the events in Christchurch. However there is still much to be done in Christchurch and Kiwibank is committed to being involved in the city’s recovery.”

Mr Brock said that throughout the year Kiwibank has maintained a strong focus on customer funding with deposits now accounting for 86% of all bank funding.

Impaired assets to total asset ratio has improved from 0.76% in June 11 to 0.69% in December 11.

Mr Brock said the bank is now approaching its 10th anniversary and the success of the bank is beyond question.

“We have retained our AA- credit rating. Importantly we have moved through a very challenging economic cycle in very good shape and the bank’s profitability continues to grow.”

Mr Brock said the bank is determined to offer a competitive alternative in the home loan and deposit markets and to grow its market share, particularly in the small to medium business sector.

“We now have more than 800,000 customers and have absolute confidence that we can continue on our growth path.”